UNION BUDGET 2009-10

RAILWAY BUDGET 2009-10

UNION BUDGET 2008-09

RAILWAY BUDGET 2008-09

UNION BUDGET 2007-08

RAILWAY BUDGET 2007-08

Calcutta Chamber of Commerce feels that the budget 2009-10 presented by the Finance Minister, while aiming at ensuring 9% growth rate during the current financial year, has given special thrust to socio-economic sectors (agriculture, health, education, rural as well as women empowerment), infrastructure projects, introduction of GST at national level by 2010 and last but not the least introduction of national E-Governance plan. If properly implemented, this will give a boost to the growth trajectory and help infrastructure development and stimulate demand. The macro economic policy pronounced in the budget also appears encouraging. This is a positive budget with long term perspective.

The Chamber welcomes the announcements on tax fronts like i) abolition of Fringe Benefit Tax and ii) removal of Commodity Transaction Tax. The Budget has also given marginal relief to individual tax payers by increasing relieves and exempting surcharge on income tax. However, the budget has belied expectation of Corporates by not reducing tax rates. The increase in MAT rate will also hard hit the sector. Industry has expected that the Finance Minister will take some bold steps for capacity creation and promoting investment, which is missing in the budget.

The extension of service tax on legal professions other than individuals will bring revolutionary effect. The presumptive tax proposed for small business tax payers is encouraging towards simplification step.

In short, the budget has delivered on impetus for growth and well being of the common man.

SUSHIL KR. AGRAWAL
PRESIDENT

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The Third Railway Budget presented by the Hon’ble Railway Minister Smt. Mamata Banerjee is largely on expected lines and can be termed as ‘pragmatic, progressive and futurist’. The budget has left both passenger and freight rates untouched.

The Railway Budget reflects a healthy growth with a freight target of 882 mt and estimated freight earnings of Rs.5300 crore.

With the introduction of 12 new point to point non-stop super fast trains, 57 new train services, extension of 27 trains and increase in frequency of 13 trains, the railway would pose tough competition for road and air traffic. With these move the air, fuel and noise pollution on roads would subside a great deal. The move is undoubtedly commendable. If experience is any guide, many of these schemes will languish for want of adequate infrastructure. Hence equal thrust should be given to strengthen infrastructure.

A host of other initiatives have been announced viz. extension of ladies special to 3 metro cities, Ijjat or low income monthly travel, special recruitment drive for physically challenged persons, introduction of double decker facilities in long distance trains, buying of tickets from post offices, automatic ticket vending machines etc. This will benefit the passengers at large. Commercial use of railways land will give a boost to railways revenues.

The Railway Minister has introduced several new procedures which will hopefully facilitate private sector participation in the railways, particularly in the design and development of stations throughout the country. The Chamber welcomes this step.

We appreciate that substantial outlays have been earmarked for improvement of safety measures and infrastructure in Indian Railways. While the proposal for improving facilities/amenities would made travel more comfortable, it is gratifying that the Minister has categorically announced that a new coach factory would be set up in Kanchrapara in West Bengal along with extension of Metro Rails in Kolkata.

Finally, Vision 2020 statement for improving countries railways network is a radical step to making Indian Railways as one of the best world class institution. The Chamber feels that the Railway Budget 2009-10 can be termed as pro-people and wishes that the steps declared will be followed by their sincere implementation.

SUSHIL KR. AGRAWAL
PRESIDENT

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Calcutta Chamber of Commerce hails the BUDGET : 2008-09 presented by the Finance Minister and welcomes the budgetary allocation in production, education, health, several employment schemes and flagship programs.

These measures will lead to overall growth and increase in demand, which will ultimately boost industry, service sector and traders.

India being an agriculture-based country and large number of population are within the category of marginal and small farmers, budget allocation for debt waiver and debt relief scheme and one time settlement scheme will benefit our deprived agriculturists.

We welcome the increase of income tax exemption limit. Our expectation for reduction of surcharge on Corporate has been belied. The increase of threshold limit in exemption of service tax is also a welcome step.

In view of worldwide recession and India facing the impact of recession in near future, there was a need to reduce interest rate. There is no indication to this effect in the Hon’ble Finance Minister’s Budget speech which is very much required for economic growth.

Hon’ble Finance Minister’s proposal for enhancement of short-term capital gain tax from 10%-15% is totally uncalled for and reason cited is unrelated. In order to support the capital market and the small investors, there is a need to roll back this proposal and retain the status quo.

H. V. PATODIA
PRESIDENT

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The 5th Railway Budget presented by the Railway Minister is largely on expected lines and has stuck to the populist track. There is an across the board reduction in both passenger and freight rates.

The Minister has announced reduction in 2nd class fares- both on passenger and mail and express train by 5%. The fare has been reduced by 4% for AC - I and AC-II tier coaches. This will be a great relief for all categories of passengers. The objective is to remain competitive vis-à-vis road and air transport.

True to the tradition set by him and his predecessors earlier over the past decade or so, the Minister has announced 10 Garib Rath trains to provide better comfort at lower rates. He has also proposed to introduce 3 new trains and extension of 16 trains besides increase in frequency of 11 trains. This is undoubtedly most commendable step taken by the Minister.

A host of other initiatives in the form of incentives have been announced viz. Tickets through mobile phone, extension of e-ticketing, LHV designed coaches in all Rajdhani train by March 2010, B&D category stations with high level platforms, extension of platforms in 30 stations, monthly season ticket for girl student up to graduation, for boys students up to 12 standard, concession for senior lady citizens, Ashok Chakra Awardees and for AIDS affected persons. so on and so forth. This will benefit the lower crust of the society.

The Budget has announced the biggest ever annual plan for the railways. The thrust areas include enhancement of high density network routes, improvement and expansion of traffic facility, construction of flyovers etc. Towards rationalisation of freight structure, the Minister has announced that henceforth freight rates for petrol and diesel would be further reduced by about 5% and for fly ash by 14%. This is the most praise-worthy step taken in the budget.

In short the Chamber feels that the Railway Budget : 2008-09 can be termed as people oriented budget provided the steps declared will be followed by their sincere implementation.

H. V. PATODIA
PRESIDENT

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Contrary to his overall objectives, the tax proposals, both direct & indirect, announced in the budget does not seem to cater to the interests of the common masses nor it looks industry friendly. The Budget has nothing about reforms too, although thrust has been given on controlling spending.

Coming to Indirect taxes, reduction of Custom Duty without any similar changes in general Excise duty rate does not provide level playing field to domestic industry. However, the increase in the threshold limit for excise duty on Small Scale Industry from Rs.1crore to Rs. 1.5 crore is a praiseworthy step. The Chamber also welcomes exemption of excise duty on water purifier equipment and bio-diesel not using electricity and reduction of excise duty on cements for not exceeding MRP of specified amount. Middle class household consumers are using water purifier using electricity, which should also be included in the exemption category.

The upward revision of exemption limit for Small Service Provider under Service Tax from Rs.4 lac to Rs.8 lac is a commendable step and will give fillip to small tax payers.

On Direct Tax front, the reduction of individual tax of Rs. 1,000 by enhancing the exemption limit by Rs. 10,000 has been fully offset by the tax levy enhancement for individuals having annual taxable income of Rs.5 lac and above by way of additional 1% secondary and higher education cess levy. Moreover, enhancement of Dividend Distribution Tax is altogether corporate unfriendly step and will be great blow to investors. Last but not the least, extension of the applicability of MAT on companies covered under exemption of Sec 10A and Sec 10B is a draconian step on sun setting clauses of said exemption.

Finally, while introducing VAT, it was promised through White Paper that CST will be phased out by reducing the rate of tax from 4% to 2% and in the second phase to nil. In this budget, the Finance Minister has promised reduction of CST to 3% with effect from 1st April, 2007, after a delay of one year, still we welcome the same.

The Trade, Industry and Commerce had great expectations from the Finance Minister in this budget in view of buoyant economy and increase in tax collections. But all expectations and hopes have been belied upon budget proposals on the floor of the Parliament. We strongly feel that the extension of MAT on companies, increase of Dividend Distribution Tax must be withdrawn while moving the Finance Bill on the floor of the Parliament.

H. V. PATODIA
PRESIDENT
Date: 28.02.2007

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The Budget 2007-08 has devised a major strategy to win over the masses by significantly increasing the number of trains and improving passenger amenities. The Ministry has introduced 32 pairs new trains, extended 23 pairs of trains and also introduced 8 new ‘Garib Raths’. The budget has made several innovative measures viz. 800 more coaches to be attached in popular trains, plans to provide cushioned seats in unreserved 2nd class coaches, facility for reservation of lower berths for senior citizens and women above 45 years travelling alone, more convenient, comfortable and high capacity new design passenger coaches will be manufactured, concession of 50% in 2nd class for candidates appearing for interview, so on and so forth. These will benefit the lower crust of the society. In addition to these, 300 more stations to be developed as modern stations, and the year 2007 has been earmarked as ‘cleanliness year’ in order to ensure cleanliness in station complexes, trains and waiting rooms.

Facing a daunting task of providing safe journey to its passenger in the wake of recent train blasts, the Minister has come out with a new comprehensive plan to deal with the situation – testing of anti-collision device in last stages, production of improved crashworthy coaches to be increased to name a few. Steps have also been taken to reduce accidents resulting from human errors which include technological upgradation for avoiding collision due to drivers fault, improving asset reliability and using fire proof coaches to reduce fatalities among others. The chamber hails the Minister for these.

However, the Minister has not made any attempts to simplify the commercial rules and procedures which are cumbersome and lock up huge amount of money in litigation for years. Nor is there any suggestion to re-route traffic so important in the present situation.

The Chamber feels that the Railway Budget 2007-08 can be termed as ‘Budget with human face’ and it will also prove industry-worthy provided the announcements made in the budget would be followed by their faithful implementation.

H. V. PATODIA
PRESIDENT
Date: 26.02.2007

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